Multiplier+2C

Fx 4) Multiplier

a. We had to multiply by 1.08 b. (100 x 1.08) x 1.08, (100 x 1.08) x 1.08^2 c. (100 x 1.08) x 1.08 ^20

Charles Williams Multiplier Multiplier - A quantity by which another number is multiplied. For Example In the problem below when 100(1.08)=108$   The multiplier is 1.08 Problem A) Explain how to get any amount at the end of any year from the year above it. Solution  A) You would multiply the past amount by 8% than once you do that the amount must then added to the amount already shown. Original amount= 100$ Percent of Increase= .08 100(.08)=$8   100+$8= $108   Problem B) Represent the amount of money in your account after two, three, and four years using powers of 1.08. Solution  B)   1st Year 100( 1.08¹ )=amount of money $108= amount of money 2nd Year 100( 1.08² )=amount of money $116.64=amount of money 3rd Year 100( 1.08³ )=amount of money $125.97=amount of money 4th Year 100( 1.08^4 )  =amount of money $136.04=amount of money Problem C) Suppose you have invested $1000 in this credit union for twenty years. How much money would be in your account at the end of 20 years? Solution  C)  Original Investment=1000$ Interest= 8% 20th Year 1000( 1.08^20 )=amount of money 4660.95=amount of money
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